Types of unemployment

Ok kiddo, let's talk about types of unemployment.

First off, what does the word "unemployment" mean? Well, it means that someone who wants to work doesn't have a job.

There are a few reasons why someone might not have a job, and we call these different types of unemployment.

The first type is called "frictional" unemployment. This is when someone is between jobs - maybe they just graduated from school and they're looking for their first job, or maybe they quit their old job and are taking some time to find a new one. This type of unemployment is usually temporary and happens when someone is in the process of switching jobs.

The second type is "structural" unemployment. This is when someone's skills or qualifications don't match up with the jobs that are available. For example, if someone only knows how to speak Spanish and all the jobs available require English, they might not be able to find a job. This type of unemployment tends to last longer because it requires someone to get more education or training to be able to qualify for different jobs.

The third type is "cyclical" unemployment. This happens when the overall economy is not doing well, and companies are not hiring as much. This can happen during recessions or economic downturns. It's called "cyclical" because it tends to follow the ups and downs of the economy.

Finally, there's "seasonal" unemployment. This is when some jobs are only available during certain times of year, like ski instructors or lifeguards. When the season is over, those jobs go away and those workers might be temporarily unemployed until the next season starts.

So those are the four types of unemployment: frictional, structural, cyclical, and seasonal. They all happen for different reasons, and they can all affect people's ability to find jobs.